Wholesale Of Code Violation Properties
Hello everyone, I'm trying to break through in real estate by starting out with wholesailing. I'm trying to focus on buying properties that have had code violations submitted against them. My question is that if I found and purshased a property that had code violations and decided to flip to another investor, whould I have to bring the property up to code before selling? Or would this be part of the disclosure information given to the seller?
Thanks in advanced for your replies
Kevin
In the Pgh surrounding areas, many municipalities have code inspectors. When the property is being sold they go to the house and write up all code violations. the new buyer is notified and they tell the inspector the time frame in which it will be brought up to code. There is no set time, but it must be reasonable.
If the house is being sold as is, then it would be the resoncibility of the buyer. It depends on the sales contract who does what.
Lori
[addsig]
Building codes change periodicallym, and when they do, they are typically written into an entire "book" of codes, which are standardized and usually adopted en toto by planning and zoning groups in cities, towns, etc.
In I several different municipalities I've seen, items that qualify as code violations (in today's codes) are often "grandfathered", as they were probably NOT violations when they were originally added, built, etc.
However, that being said, the planning group in your city probably require that the code violations be remedied if you undertake any remodeling, etc. of any significance. Check with them to find out for sure.
Also, you could find out from them what your specific responsibility would be if you flip...at the very least, you would have to disclose the violations, but if they are grandfathered, then you could disclose that, too.
Thanks Lori and Glieberman, That's very helpful.
Kevin